At retirement, it’s time to begin withdrawing from assets to support your standard of living. Withdrawals may come from retirement accounts (e.g., 401(k), 403(b), and IRA), personal investments (e.g., stocks, bonds, and real estate), and annuities. Money withdrawn might be only investment earnings or a combination of earnings and principal.
Before retiring abroad, savvy seniors should first carefully lay the financial groundwork to ensure relocation hasn't unexpected costs, financial experts say. Regardless of where you live, your U.S. tax obligations remain the same.
If you're past age 70 1/2, those withdrawals have to start coming out of your tax-sheltered retirement accounts. Are you better off taking your distribution at the beginning of the year, or at the end? Or should you take them throughout the year, the better to fund living expenses and cover quarterly estimated taxes?
Planning an early retirement? This ranking looks at taxes on retirement income, property taxes, health insurance costs and other expenses to find the most economical states for retirees.
Wade Pfau lays out the essential building blocks of the Retirement Researcher retirement income planning philosophy.
In addition to gauging HSA quality, long-term HSA investors need to consider the logistics of managing their HSAs, especially if their plan is to carry the HSA assets into retirement.
While just a handful of so-called retirement income funds are currently available, financial advisors say the lineup of offerings is worth exploring.
Although this is a "sponsored article" by Brighthouse, it provides some interesting insights into retirement income planning.
It's overly simplistic, but it is a starting place for setting capital accumulation goals for retirement. Taxes, inflation, and other factors need to be considered.
In a family with multiple children, a surviving spouse can receive a benefit of as much as 100% of the deceased worker's benefit, and eligible children will get up to 75% of the worker's benefit. Therefore, when there's more than one eligible child, then the family maximum kicks in.
Forbes: A recent New York Times article on reverse mortgages published a common error that feeds into negative misconceptions that continue to hinder using home equity as a strategic retirement income source.
You can use a variety of strategies to decrease the amount of taxes on your investment portfolio and retirement income.
The financial circumstances facing retirees differ dramatically from pre-retirees. For this reason, traditional wealth management approaches do not sufficiently address a retiree’s needs. Wade Pfau has outlined seven financial challenges unique to retirees that must be taken into account when planning for retirement.
In this guest post, Derek Tharp – our new Research Associate at Kitces.com, and a Ph.D. candidate in the financial planning program at Kansas State University – analyzes safe withdrawal rates based on various dynamic spending adjustments retirees could choose to adopt, finding that small-but-permanent strategies are generally both more effective, and realistically implementable, than large-but-temporary spending adjustments.
Are you worried about going broke after you retire? Many fret about longer retirements, fewer pensions, choppy markets, and low savings rates.
Low taxes, access to health care, cultural activities, and crime rates are important, but don't forget social networks and family.
When it comes to helping retirees figure out the financial aspect of their retirement plans, one of the conventions is "income-replacement rate." Morningstar suggests calculating cash flow requirements, instead.
Social Security provides an enormous return for those who are patient.Consider its retirement benefits. You can take them as early as 62 or as late...
Kitces explains how interest, dividends, capital gains, and principal serve as the four pillars of retirement income, and why the traditional "income" approach lost its appeal.
How much money do you need at retirement to generate enough income to maintain your standard of living? J.P. Morgan developed a simplified method to determine if you have currently accumulated enough assets to be on track. It doesn’t replace professional financial planning software, but it can be used to begin the planning discussion.
A life annuity is a contract typically sold by an insurance company to an “annuitant” (often a retiree) guaranteeing periodic payments for as long as the annuitant lives. In retirement planning, we use annuities to mitigate longevity risk, the risk of outliving our retirement savings